Bill clarifies registration and prohibits kiosk operators from acting as ATMs
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Summary
SB 741 would clarify that both owners and software operators of virtual‑currency kiosks must register with the Office of Financial Regulation and that kiosks are not ATMs; OFR and AARP backed the bill, citing fraud risks for older adults and the need to hold operators accountable.
Sydney Hamilton presented SB 741 as a technical clarification to last year's kiosk registration law, saying the bill would expand the definition of virtual currency kiosk operator and clarify the term "virtual currency service," and explicitly state that kiosks do not provide ATM services.
Kat Hyland, deputy commissioner of financial regulation, said the bill ensures both kiosk owners and the software operators behind machines must register with OFR, improving accountability and enforcement. She said OFR has already registered over 700 kiosks statewide while implementing last year's law.
Sarah Westrick, advocacy director for AARP Maryland, urged a favorable report, citing studies that show high fraud rates associated with some kiosk operators and emphasizing the disproportionate harm to older adults. She said SB 741 closes a loophole that some operators use to avoid regulation by separating machine owners from software operators.
Supporters said the bill would strengthen consumer protections without fiscal impact and requested a favorable report; the committee closed the hearing with no questions.
